“FACTORS IMPACTING CONSUMERS’

PREFERENCES OF POST- PAID AND PRE-PAID

CONNECTIONS” –A COMPARATIVE STUDY OF
DIBRUGARH UNIVERSITY

A project submitted to
THE CENTRE FOR MANAGEMENT STUDIES,
DIBRUGARH UNIVERSITY
in partial fulfillment of the Degree of Masters of Business Administration (FT)
under the Semester System for Paper No.BM- 303 ‘Project Study’

PROJECT GUIDE: SUBMITTED BY:

Mr. Pratim Barua Chandan Das
Faculty Member Roll No. 07
Centre for Management Studies, MBA 3rd Semester
Dibrugarh University CMSDU
 CERTIFICATE

This to certify that the project report entitled FACTORS IMPACTING CONSUMERS’
PREFERENCES OF POST-PAID AND PRE-PAID CONNECTIONS-A COMPARATIVE
STUDY OF DIBRUGARH UNIVERSITY submitted by Mr. Chandan Das have been prepared
under my supervision and guidance. The report is based on a work done during the period of
April-May, 2010. It was done in partial fulfillment of the Master of Business Administration
(MBA) Degree of Dibrugarh University under semester system for Paper No.303-Project Study.

It is further certified that the said project has not been carried out anywhere else and it has not been
submitted to any other University or Institution for similar purposes.

(Mr. Pratim Barua)

Date:
 Preface
In a professional course like MBA, we are basically trained & equipped with strong
knowledge of how business operates & what are the times tested methods of running a
successful business. The programme is design to provide both portfolio of strong functional
skills and ability to apply, adopt and integrate those skills in different settings. But no course
of study is fully completed unless there is first hard practical knowledge of the business and
professional way of working.
Therefore, to reinforce this strong theoretical base, the students of Centre for
Management Studies, Dibrugarh University, are assigned certain project in Project Study and
to get acquainted with the practical business world.
I have been assigned to work on “FACTORS IMPACTING CONSUMERS’
PREFERENCES OF POST-PAID AND PRE-PAID CONNECTIONS-A COMPARATIVE
STUDY OF DIBRUGARH UNIVERSITY ”. The main objective of doing this study is to find
out the factors impacting consumers’ preferences of post-paid and pre-paid connections and
comparison between the preference of the people on post-paid and pre-paid connections.

ACKNOWLEDGEMENT
 It was a great pleasure and a unique experience to work on this project. On its
completion I would like to express my sincere thanks and gratitude to those who have
extended their valuable time, co-operation and guidance during the course of the study.

My sincere thanks Mr. Pratim Barua for guiding me as my project guide and other faculty
members of CMS DU for helping me in preparing my report.

I thank my friends for offering their support and helping me during the course of my project
study

I also thank my respondents for giving their time in filling my questionnaire through which
the survey was made.

Chandan Das

Roll No: 07

MBA 3rd Semester

CMSDU

Executive Summary
1. PROJECT TITLE : “FACTORS IMPACTING CONSUMERS’ PREFERENCES OF
POST-PAID AND PRE-PAID CONNECTIONS-A COMPARATIVE STUDY OF
DIBRUGARH UNIVERSITY”
2. MAIN OBJECTIVES :
➢ To find out the factors impacting consumers’ preferences of post-paid and
pre-paid connections.
➢ Comparison between the preference of the people on post-paid and pre-paid
connections.
1. PURPOSE OF THE STUDY:
The study will reveal the customers’ satisfaction, perception and other criteria
followed by them while choosing post-paid and pre-paid connections of various
telecom companies within Dibrugarh University
2. SCOPE OF THE STUDY :
The study is confined to the Dibrugarh University only. This study will try to find
out the various attributes which are preferred by the customers in choosing post-
paid and pre-paid connections. The study is restricted to the students, faculties
and the employees of Dibrugarh University only.
3. RESEARCH METHODOLOGY:

3.1 Research Plan: As there are 28 departments and centres with nearly 2700
students,450 employees and 195 faculties in the university and the number of
employees who actually uses mobile phones and 155 faculties who actually
uses mobile phone and the number of students, faculties and employees are not
uniformly distributed, sampling was done on the basis of convenience
sampling. For selecting employees, the Administrative Building, Dibrugarh
University Health Centre and the Central Library of Dibrugarh University was
visited and samples were selected.5% of the students and 10% of the faculties
of each department and centres were taken. For the employees 10% of the
employees of the University were taken. Along the line of the descriptive
research, the research objectives were redefined and the questionnaire was
designed. With the help of the questionnaire ,the survey was conducted in
Dibrugarh University
3.2 Sources of Data: The data collected is basically a blend of primary and
secondary data. The secondary data was collected from newspaper, copy
containing the database of the Teachers, Officers and Employees of Dibrugarh
University and website. The primary data was collected with the help of
questionnaire.
3.3 Sample Size: The sample size selected out of the sample universe for this
study is 190 which consists of 150 students, 15 faculties and 25 employees of
the University.
3.4 Sampling Procedure: 190 samples were selected on the basis of Convenience
Sampling. In the first step, the number of students and faculties in each of
departments and centres were found out. After that 5% of the total number of
students i.e. 150 and 10% of the total number of faculties i.e. 15 from each
departments were taken. In the next step the total number of employees in the
university was found out and 10% of the employees were taken which were 25.
 4. MAJOR FINDINGS
From the study it has been found out that
4.1 Pre-paid connection is dominant among the students.
4.2 Employees and faculties prefer to use post-paid connection.
4.3 Income is a major factor while choosing a connection.
4.4 Pre-paid connection is regarded as the most economical.

5. LIMITATIONS OF THE STUDY

5.1 The study was confined to only to the students, faculties and employees of
Dibrugarh University. So the findings may not be generalized in a broader
perspective.
5.2 Some of the respondents did not read the questionnaire carefully.
5.3 Some of the questionnaires were lost by the respondents during the survey.
5.4 It was very difficult to make the respondents realize the sincerity of the tests.

Contents
List of figures and tables
1. Chapter 1
1.1 Introduction
 1.2 History Of Telecommunication
1.3 Growth in Telecom Sector
1.4 Future Outlook of Telecom Sector
1.5 Indian telecom services
1.6 Opportunities of Telecom sector In India
1.7 Major Players in Assam

2. Chapter 2
2.1 About Prepaid services
2.2 About Post-paid services

3. Chapter 3
Research Methodology

4. Chapter 4
Analysis of the data and interpretation

5. Chapter 5
Limitation

6. Chapter 6
Conclusion

Annexure

Bibliography
List of figures and tables:

Figure Number Figure Name

Figure 4.1 Gender of students
Figure 4.2 Type of connection
Figure 4.3 Preferred connection
Figure 4.4 Factors considered for the preference of
particular connection
Figure 4.5(a) Factors affecting the preference of post-paid
connection
Figure 4.5(b) Factors affecting the preference of post-paid
connection
Figure 4.6 Switching of connections
Figure 4.7 Factors considered while taking a new
connection
Figure 4.8 Did you have a different connection earlier
Figure 4.9 Which one is more economical
Figure 4.10(a) Ranking of post-paid connection
Figure 4.10(b) Ranking of pre-paid connection
Figure 4.11 Gender of faculties
Figure 4.12 Type of connection
Figure 4.13 Preferred connection
Figure 4.14 Factors considered for the preference of
particular connection
Figure 4.15(a) Factors affecting the preference of post-paid
connection
Figure 4.15(b) Factors affecting the preference of post-paid
connection
Figure 4.16 Switching of connections
Figure 4.17 Factors considered while taking a new
connection
Figure 4.18 Did you have a different connection earlier
Figure 4.19 Which one is more economical
Figure 4.20(a) Ranking of post-paid connection
Figure 4.20(b) Ranking of pre-paid connection
Figure 4.21 Gender of employees
Figure 4.22 Type of connection
Figure 4.23 Preferred connection
Figure 4.24 Factors considered for the preference of
particular connection
Figure 4.25(a) Factors affecting the preference of post-paid
connection
Figure 4.25(b) Factors affecting the preference of post-paid
connection
Figure 4.26 Switching of connections
Figure 4.27 Factors considered while taking a new
connection
Figure 4.28 Did you have a different connection earlier
Figure 4.29 Which one is more economical
Figure 4.30(a) Ranking of post-paid connection
Figure 4.30(b) Ranking of pre-paid connection

List of Tables:

Table 4.1 Gender of students

Table 4.2 Type of connection
Table 4.3 Preferred connection
Table 4.4 Factors considered for the preference of
particular connection
Table 4.5(a) Factors affecting the preference of post-paid
connection
Table 4.5(b) Factors affecting the preference of post-paid
connection
Table 4.6 Switching of connections
Table 4.7 Factors considered while taking a new
 connection
Table 4.8(a) In case you had a post-paid connection
earlier, why did you choose pre-paid now
Table 4.8(b) In case you had a pre-paid connection earlier,
why did you choose post-paid now
Table 4.9 Which one is more economical
Table 4.10 Ranking of post-paid and pre-paid connection
Table 4.11 Gender of faculties
Table 4.12 Type of connection
Table 4.13 Preferred connection
Table 4.14 Factors considered for the preference of
particular connection
Table 4.15(a) Factors affecting the preference of post-paid
connection
Table 4.15(b) Factors affecting the preference of post-paid
connection
Table 4.16 Switching of connections
Table 4.17 Factors considered while taking a new
connection
Table 4.18(a) In case you had a post-paid connection
earlier, why did you choose pre-paid now
Table 4.18(b) In case you had a pre-paid connection earlier,
why did you choose post-paid now
Table 4.19 Which one is more economical
Table 4.20 Ranking of post-paid and pre-paid connection
Table 4.21 Gender of faculties
Table 4.22 Type of connection
Table 4.23 Preferred connection
Table 4.24 Factors considered for the preference of
particular connection
Table 4.25(a) Factors affecting the preference of post-paid
connection
Table 4.25(b) Factors affecting the preference of post-paid
 connection
Table 4.26 Switching of connections
Table 4.27 Factors considered while taking a new
connection
Table 4.28(a) In case you had a post-paid connection
earlier, why did you choose pre-paid now
Table 4.28(b) In case you had a pre-paid connection earlier,
why did you choose post-paid now
Table 4.29 Which one is more economical
Table 4.30 Ranking of post-paid and pre-paid connection
1. Chapter 1
1.1 Introduction
1.2 History of Telecommunication
1.3 Growth in Telecom Sector
1.4 Future Outlook of Telecom Sector
1.5 Indian telecom services
1.6 Opportunities of Telecom sector In India
1.7 Major Players in Assam
1.1 Introduction

Indian telecommunication Industry is one of the fastest growing telecom market in the world.
The mobile sector has grown from around 10 million subscribers in 2002 to reach 150
million by early 2007 registering an average growth of over 90% year on year. The two
major reasons that have fuelled this growth are low tariffs coupled with falling handset
prices.
The other reason that has tremendously helped the telecom Industry is the regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments.
According to Telecom Regulatory Authority of India (TRAI) the rate of market expansion
would increase with further regulatory and structural reforms.
Even though the fixed line market share has been dropping consistently, the overall (fixed
and mobile) subscriber has risen to more than 200 million by first quarter of 2007. The
telecom reforms have allowed the foreign telecommunication companies to enter Indian
market which has still got huge potential. International telecom companies like Vodafone
have made entry into Indian market in a big way.
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400,000 Crore). Two telecom players dominate this market - Bharti Airtel with 27% market
share and Reliance Communication with 20% along with other players like BSNL (Bharat
Sanchar Nigam Limited) and AT&T.
One segment of the market that has been puzzling is broadband Internet. Despite the manner
in which the country’s Internet market has been booming, India’s move into high-speed
broadband Internet access has been distinctly slow. And, while there appears to be
considerable enthusiasm amongst the population for the Internet itself, this has not been
reflected in broadband subscription numbers. In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost 200% to
just over 2 million by year’s end. Despite this surge, broadband penetration in India still
remains around only 0.2%, broadband services still account for only 25% of the total Internet
subscriber base, still in itself comparatively low.
The Ministry of Communications and Information Technology (MCIT) has very aggressive
plans to increase the pace of growth, 500 million by 2010. Most of the expansion in
subscribers is set to occur in rural India. India is the destination for the investment in the
telecom industry worldwide. India’s rural telephone density is only 13% and urban is 74% so
the telecom sector is now mostly focusing on the connectivity in the rural areas.
1.2 History of Indian Telecommunication
The telegraph act of 1885 governed the telecommunications sector. Under this act, the
government was in-charge of policymaking and provision of services. Major changes in
telecommunications in India began in the 1980s. The initial phase of telecom reforms began
in 1984 with the creation of Center for Department of Telematics (C-DOT) for developing
indigenous technologies and private manufacturing of customer premise equipment. Soon
after, the Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam
Limited (VSNL) were set up in 1986. The Telecom Commission was established in 1989.

When telecom reforms were initiated in 1994, there were three incumbent in the fixed
service sector, namely DoT (Department of Telecom), MTNL and VSNL. Of these, DoT
operated in all parts of the country except Delhi and Mumbai. MTNL operated in Delhi and
Mumbai and VSNL provided international telephony.

Given its all-India presence and policy-making powers, the DoT enjoyed a monopoly in the
telecom sector prior to the major telecom reforms. However, subsequent to the second phase
of reforms in 1999, which included restructuring the DoT to ensure a level playing field
among private operators and the incumbent, the service-providing sector of DoT was split up
and called Department of Telecom Services (DTS). DTS was later corporatized and renamed
Bharat Sanchar Nigam Limited (BSNL). This meant separation of the incumbent service
provider from the policy-maker. Broadly, DoT is now responsible for policy-making,
licensing and promotion of private investments in both telecom equipment and manufacture
and provision of telecom services. BSNL, a corporate body, is responsible for the provision
of services.

A crucial aspect of the institutional reform of the Indian telecom sector was setting up of an
independent regulatory body in 1997 – the Telecom Regulatory Authority of India (TRAI),
to assure investors that the sector would be regulated in a balanced and fair manner. TRAI
has been vested with powers to ensure its independence from the government. The
government has retained the licensing function with itself. The main issue with respect to
licensing has not been whether it should be with the regulator but that the terms and
conditions of licensing should involve consultations with TRAI to ensure transparency in the
bidding process Some of the main functions of TRAI include fixing tariffs for telecom
services, dispute-settlement between service providers, protecting consumers through
monitoring of service quality and ensuring compliance to license conditions, setting service
targets and pricing policy for all operators and service providers.

Further changes in the regulatory system took place with the TRAI Act of 2000 that aimed at
restoring functional clarity and improving regulatory quality. TRAI can frame regulations
and can levy fees and charges for telecom services as deemed necessary. The regulatory
body also has a separate fund (called the TRAI General Fund) to facilitate its functioning. To
fairly adjudicate any dispute between licensor and licensee, between service provider,
between service provider and a group of consumers, a separate disputes settlement body was
set up called Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Actually, telecommunications is not a new concept. It began in the mid-1800s with the
telegraph, whereby sounds were translated manually into words, then the telephone,
developed in 1876, transmitted voices, and then the teletypewriter, developed in the early
1900s, was able to transmit the written word.

Since the 1960s, telecommunications development has been rapid and wide reaching.
Deregulation and new technology have created increased competition and widened the range
of network services available throughout the world. This increase in telecommunication
capabilities allows businesses to benefit from the information revolution in numerous ways,
such as streamlining their inventories, increasing productivity, and identifying new markets.
In the following sections, the technology of modern telecommunications will be discussed

Progress of reforms
a. Private Participation in Telecom - For the provision of basic services, the entire country
was divided into 21 telecom circles, excluding Delhi and Mumbai. With telecom markets
opened to competition, DoT and MTNL were joined by private operators but not in all parts
of the country. By mid-2001, all six of the private operators in the basic segment had started
operating After a recent licensing exercise in 2002, there exists competition in most service
areas. However, the market is still dominated by the incumbent. In December 2002, the
private sector provided approximately 10 million telephones in fixed, WLL (Wireless Local
Loop) and cellular lines compared to 0.88 million cellular lines in March 1998 (DoT Annual
Report, 2002). 72 per cent of the total private investment in telecom has been in cellular
mobile services followed by 22 per cent in basic services. After the recent changes, the stage
is now set for greater competition in most service areas for cellular mobile Over the time,
the rise in coverage of cellular mobile will imply increased competition even for the basic
service market because of competition among basic and cellular mobile services.

b. Tele density and Village Public Phones (VPTs) - India's rapid population increase
coupled with its progress in telecom provision has landed India's telephone network in the
sixth position in the world and second in Asia (ITU). Tele density has risen to 4.9 phones per
100 persons in India compared to the average 7.3 mainlines per 100 people around the world.
Although, the coverage is still much higher in urban areas - 13.7 in urban areas compared
to1.4 in rural areas, the government has made efforts to connect villages through village
public telephones (VPT) and Direct Exchange Lines (DEL)

c. Foreign Participation – India has opened its telecom sector to foreign investors up to 100
percent holding in manufacturing of telecom equipment, internet services, and infrastructure
providers (e-mail and voice mail), 74 percent in radio-paging services, internet (international
gateways) and 49 percent in national long distance, basic telephone, cellular mobile, and
other value added services (FICCI, 2003). Since 1991, foreign direct investment (FDI) in the
telecom sector is second only to power and oil - 858 FDI proposals were received during
1991-2002 totaling Rs.56, 279 crore. (DoT Annual Report, 2002). Until now, most of the
FDI has come in the cellular mobile sector partly due to the fact that there have been more
cellular mobile operators than fixed service operators. For instance, during the period 1991-
2001, about 44 percent of the FDI was in cellular mobile and about 8 percent in basic service
segment.

d. Tariff-setting - An essential ingredient of the transition from a protected market to

competition is the alignment of tariffs to cost-recovery prices. Traditionally, DoT tariffs
cross-subsidized the costs of access (as reflected by rentals) with domestic and international
long distance usage charges. Therefore, re-balancing of tariffs - reducing tariffs that are
above costs and increasing those below costs - was an essential pre-condition to promoting
competition among different service providers and efficiency in general.

TRAI issued its first directive regarding tariff-setting by re-balancing tariffs and to lead in an
era of competitive service provision. Subsequently, it conducted periodic reviews and made
changes in the tariff levels, if necessary. Re-balancing led to a reduction in cross-
subsidization in the fixed service sector.

e. Service Quality - One of the main reasons for encouraging private participation in the
provision of infrastructure rests on its ability to provide superior quality of service. In India,
as in many developing countries, low tele density resulted in great emphasis being laid on
rapid expansion often at the cost of quality of service. One of the benefits expected from the
private sector's entry into telecom is an improvement in the quality of service to international
standards. Private operators are expected to provide consumers value for their money.
Telephone faults per 100 main lines came down to 10.32 and 19.14 in Mumbai and Delhi
respectively in 2002-03 compared to 11.72 and 26.6 in 1997-98 .Quality of service was
identified as an important reform agenda and TRAI has devised QOS (Quality of Service)
norms that are applicable across the board to all operators .

Pre reform period and Telecommunication in India

Before 1990's Telecommunication services in India were complete government Monopoly -

the Department of Telecommunication (DoT). Government also retained the rights for
manufacturing of Telecommunication equipments. MTNL and VSNL were created in the
year 1986.Early 1990's saw initial attempts to attract private investment.

A notable revolution has occurred in the telecom sector. In the pre reforms era, this was
entirely in the hands of the central government and due to lack of competition, the call
charges were quite high. Further, due to lack of funds with the government, the government
could never meet the demand for telephones. In fact, a person seeking a telephone
connection had to wait for years before he could get a telephone connection. The service
rendered by the government monopoly was also very poor. Wrong billing, telephones lying
dead for many days continuously due to slackness on the part of the telecom staff to attend to
complaints, cross connections due to faulty ill maintained telephone lines, obsolete
instruments and machinery in the telephone department were the order of the day in the pre
reforms era.

Today, there are many players in the telecom sector. The ultimate beneficiary has been the
consumer. Prices of services in this sector have fallen drastically.

Telephone connections are today affordable to everyone and are also easily available. Gone
are the days, when one had to wait for years to get a telephone connection. The number of
telephone connections which was only 2.15 million (fixed lines) in 1981 increased to 5.07
million (fixed lines) in 1991. In the year 2003, there were 54.62 million telephone
connections of which 41.33 million are fixed line telephone connections, 12.69 million are
cellular mobiles and the remaining 0.60 million are WLL telephones1. Wireless in Local
Loop (WLL) telephones and cellular mobile telephones were unknown in India a few years
ago. Cell phones charges have come down so much that today one can see even a common
man going around with a cell phone in his hand. The private companies are giving various
incentives to attract customers, a situation which is entirely opposite to the conditions
prevailing in the pre reforms era when one had to wait for years to get a telephone
connection.

Liberalization and reforms in Telecom sector since early 1990's till date are briefed below:

1991-92:

1. On 24th July 1991, Government announced the New Economic Policy.

2. Telecom Manufacturing Equipment license was delicensed in 1991.
3. Automatic foreign collaboration was permitted with 51 per cent equity by the collaborator.

1992-93:

Value added services were opened for private and foreign players on franchise or license
basis. These included cellular mobile phones, radio paging, electronic mail, voice mail, data
services using VSAT's, and video conferencing.
1994-95:

1. The Government announced a National Telecom Policy 1994 in September 1994. It

opened basic telecom services to private participation including foreign investments.
2. Foreign equity participation up to 49 per cent was allowed in basic telecom services, radio
paging and cellular mobile. For value added services the foreign equity cap was fixed at 51
per cent.
3. Eight cellular licenses for four metros were finalized.

1996-97:

1. TRAI was set up as an autonomous body to separate the regulatory functions from policy
formulations and operational functions.
2. Coverage of the term "infrastructure" expanded to include telecom to enable the sector to
avail of fiscal incentives such as tax holiday and concessional duties.
3. An agreement between Department of Telecommunication (DoT) and financial institutions
to facilitate funding of cellular and basic telecom projects.
4. Internet Policy was finalized.

1998-99:

FDI up to 49 per cent of total equity, subject to license, permitted in companies providing
Global Mobile Personal Communication (GMPC) by satellite services.

1999-00:

1. National Telecom Policy 1999 was announced which allowed multiple fixed Services
operators and opened long distance services to private operators.
2. TRAI was reconstituted. A clear distinction was made between the recommendatory and
regulatory functions of the Authority.
3. DOT/MTNL was permitted to start cellular mobile telephone service.
4. To separate service providing functions from policy and licensing functions, Department
of Telecom Services was set up.
5. A package for migration from fixed license fee to revenue sharing offered to existing
cellular and basic service providers.
6. First phase of re-balancing of tariff structure started. STD and ISD charges were reduced
by 23 per cent on an average.
7. Voice and data segment was opened to full competition and foreign ownership increased
to 100 per cent from 49 per cent previously.

2000-01:

1. TRAI Act was amended. The Amendment clarified and strengthened the recommendatory
power of TRAI, especially with respect to the need and timing of introduction of new
services provider, and in terms of licenses to a services provider.
2. Department of Telecom Services and Department of Telecom operations corporatized by
creating Bharat Sanchar Nigam Limited.
3. Domestic long distance services opened up without any restriction on the number of
operators.
4. Second phase of tariff rationalization started with further reductions in the long distance
STD rates by an average of 13 per cent for different distance slabs and ISD rates by 17 per
cent.
5. Internet Service Providers were given approval for setting up of International Gateways
for Internet using satellite as a medium in March 2000.
6. In August 2000, private players were allowed to set up international gateways via the
submarine cable route.
7. The termination of monopoly of VSNL in International Long Distance services was
antedated to March 31, 2002 from March 31, 2004.

2001-02:

1. Communication Convergence Bill, 2001 was introduced in August 2001.

2. Competition was introduced in all services segments. TRAI recommended opening up of
market to full competition and introduction of new services in the telecom sector. The
licensing terms and conditions for Cellular Mobile were simplified to encourage entry for
operators in areas without effective competition.
3. Usage of Voice over Internet Protocol permitted for international telephony service.
4. The five-year tax holiday and 30 per cent deduction for the next five years available to the
telecommunication sector till 31st March 2000 was reintroduced for the units commencing
their operations on or before 31st March 2003. These concessions were also extended to
internet services providers and broadband networks.
5. License conditions for Global Mobile Personal Communications by Satellite finalized in
November 2001.
6. National Long Distance Service was opened up for unrestricted entry with the
announcement of guidelines for licensing NLD operators.
7. The basic services were also opened up for competition. 33 Basic Service licenses (31
private and one each to MTNL and BSNL) were issued up to 31stDecember 2001.
8. Four cellular operators, one each in four metros and thirteen were permitted with 17 fresh
licenses issued to private companies in September/October 2001. The cell phone providers
were given freedom to provide, within their area of operation, all types of mobile services
equipment, including circuit and/or package switches that meet the relevant International
Telecommunication Union (ITU)/ Telecom Engineering Centre (TEC) standards.
9. Wireless in Local Loop (WLL) was introduced for providing telephone connection in
urban, semi-urban and rural areas.
10. Disinvestment of PSU's in the telecom sector was also undertaken during the year. In
February 2002, the disinvestment of VSNL was completed by bringing down the government
equity to 26 per cent and the management of the company was transferred to Tata Group, a
strategic partner.
12. Government allowed CDMA technology to enter the Indian market.
13. Reliance, MTNL and Tata were issued licenses to provide the CDMA based services in
the country.
14. TRAI recommended deregulating regulatory intervention in cellular tariffs, which meant
that operators need no longer have prior approval of the regulator for implementing tariff
plans except under certain conditions.

2002-03
1. International long distance business opened for unrestricted entry.
2. Telephony on internet permitted in April 2002.

3. TRAI finalized the System of Accounting Separation (SAS) providing detailed

accounting and financial system to be maintained by telecom service providers.

2003-04

1. Unified Access Service Licenses regime for basic and cellular services was introduced in
October 2003. This regime enabled services providers to offer fixed and mobile services
under one license.
2. Interconnection Usage Charge regime was introduced with the view of providing
termination charge for cellular services
3. The Telecommunication Interconnection Usage Charges Regulation 2003 was introduced
on 29th October 2003 which covered arrangements among service providers for payment of
Interconnection Usage Charges for Telecommunication Services and covered Basic Service
that includes WLL (M) services, Cellular Mobile Services, and Long Distance Services
(STD/ISD) throughout the territory of India.
4. The Universal Service Obligation fund was introduced as a mechanism for transparent
cross subsidization of universal access in telecom sector. The fund was to be collected
through a 5 per cent levy on the adjusted gross revenue of all telecom operators.
5. Broadcasting notified as Telecommunication services under Section 2(i)(k) of TRAI Act.

2004-05:

1. Budget 2004-05 proposed to lift the ceiling from the existing 49 per cent to 74 per cent as
an incentive to the cellular operators to fall in line with the new unified licensing norm.
2. Broadband Policy announced on 14th October 2004. In this policy, broadband had been
defined as an "always-on" data connection supporting interactive services including internet
access with minimum download speed of 256 kbps per subscriber.
3. The Telecommunications (Broadcasting and Cable Services) Interconnection Regulation
2004 was introduced on 10th December 2004.
6. BSNL and MTNL launched broadband services on 14th January 2005.
7. TRAI announced the reduction of Access Deficit Charge (ADC) by 41 per cent on ISD
calls and by 61 per cent on STD calls which were applicable from 1st February 2005.

2005-2006

1. Budget 2005-2006 cleared a hike in FDI ceiling to 74 per cent from the earlier limit of 49
per cent. 100 per cent FDI was permitted in the area of telecom equipment manufacturing
and provision of IT enabled services.
2. Annual license fee for National Long Distance (NLD) as well as International Long
Distance (ILD) licenses reduced to 6 per cent of Adjusted Gross Revenue (AGR) with effect
from 1st January 2006.
3. BSNL and MTNL launched the 'One-India Plan' with effect from 1st March 2006 which
enable the customers of BSNL and MTNL to call from one end of India to other at the cost
of Rs. 1 per minute, any time of the day to phone.
4. TRAI fixed Ceiling Tariff for International Bandwidth, Ceiling Tariff for higher capacities
reduced by about 70 per cent and for lower capacity by 35 per cent.
5. Regulation on Quality of Service of Basic and Cellular Mobile Telephone Services 2005
introduced on 1st July 2005.
6. BSNL announced 33 per cent reduction in call charges for all the countries for
international calls.
7. Quality of Service (Code of Practice for Metering and Billing Accuracy) Regulation 2006
introduced on 21st March 2006.

2007-20012

FDI in Telecom sector has increased in recent years with value of 81.62 billion with share of
10% in total inflow during January 2000 to June 2005. This is mainly in telecom services and
not in telecom manufacturing sector. Therefore, it is essential to enhance the prospect for
inflow of increased funds. But till date export of telecom equipment remains minimal. Most
of the state-of-the-art telecom equipments including mobile phones are imported from
abroad. There is thus immense potential for indigenous manufacturing in India. Certain
measures like financial packages, formation of a telecom export promotion council, creation
of integrated facilities for telecom equipment through SEZ and encouraging overseas
vendors to set up facilities in India, are required for making India a hub for telecom
equipment manufacturing and attract FDI. The telecom sector has shown robust growth
during the past few years. It has also undergone a substantial change in terms of mobile
versus fixed phones and public versus private participation.

1.3 Growth in Telecom Sector

Indian telecom sector has undergone a major process of transformation through significant
policy reforms. With 359 million telephone subscribers today, India now boasts of having
the second largest telecom network in the world after China. The country is adding some 8.5
million to 10 million new mobile subscribers to the network every month to also emerge as
one of the fastest growing telecom markets in the world. The telecom industry also saw an
estimated $8.5 billion in investment flow in during 2006-07 alone, of which $550 million
was in the form of foreign direct investment. All major telecom handsets manufacturers have
their presence in India, so do the leading global service companies and infrastructure majors.
The next phase of growth will be in the country's vast rural areas –that would bring more
development. Also, with a tele-density of just 8 percent in rural India, as opposed to 50
percent in urban centers, the hinterland offers good scope for expansion.

The Telecom sector in India has witnessed unparalleled growth by global standards. In a
little over a decade of wireless telephony, India has moved from a subscriber base of zero to
becoming the second-largest market in the world after China. It can be hoped that the
progressive policies would facilitate growth and evolution of this sector by providing
impetus to free flow of investment, ideas and technology. The progress in the sector has been
something to be proud of and it is often viewed as ample testimony to the India growth story.
Several developments in the industry are afoot, which will be crucial to defining the state of
this industry in times to come. Additional 2G spectrum has been recently allotted, allowing
the entry of several new players — wherein a majority of them are also acquiring strategic
international partners, commencing the globalization of Indian Telecom. The rollout of 3G,
which could potentially transform the bouquet of services extended to consumers from
vanilla voice and basic data to rich entertainment and far more, is poised for a take-off with
the impending auction of the 3G spectrum. Broadband — conventional as well as wireless —
is poised for a major dive. In the wake of such developments, a concerted effort must be
made between the industry and the Government (as the prime mover and regulator on
policies in Telecom) on ensuring that policies, regulations and laws are formulated in a
manner that creates systematic growth and harnesses the full potential of this industry for the
Indian consumer.
Confederation of Indian Industry CII, in collaboration with Ernst & Young, has put together
the report “India 2012: Telecom Growth Continues”, which brings out the current status of
the industry with a brief perspective on how that growth has been achieved, and sets the
context for the landscape in 2012. It focuses on current issues and the envisaged future
concerns and potential points of debate, which would need to be jointly addressed by the
industry and the Government in order to enable this industry to continue on its already-
impressive growth trajectory, and become the cynosure of the Telecom world.

1.4 Future Outlook of Telecom Market in India

Telecom penetration in India at around 27 per cent is still very low. With the increase in the
number of operators in the markets and better population coverage, the sector is likely to
grow at a rapid pace in the future. The wireless subscriber base in India is expected to reach
around 470 million by March 2010. Wireless and data segments are likely to be the growth
drivers for the industry in the medium term. Broadband penetration in India is negligible at
around 1 per cent only. The segment has huge growth potential and is likely to be next
growth driver for the sector. There are many global players who are looking to enter the
Indian market. In such a scenario, it is unlikely to see a slowdown in investments.

1.5 Indian Telecom Services

Indian Telecom Services are divided into three parts:

• Basic services
• Mobile Services and
• Internet Services
 Basic Services: Basic services include fixed wire line and wireless in local loop
(WLL-fixed). In 2006–07, basic services subscribers exceeded 50 million. Fixed wire
line services hold a major market share of 83 percent in basic services.BSNL and
MTNL are market leaders in this segment.Although the government-owned BSNL
dominates the segment in terms of subscriber base and market share, private players
have registered a notable growth.
 Mobile Services: Mobile services have led to a spectacular growth in the Indian
telecom industry. Currently, 12 players are active in this segment. The total number
of wireless subscribers escalated to 185.13 million at the end of June 2007, with a
monthly addition of more than 6 million wireless subscribers. Despite the decreasing
ARPU, the minutes of usage is on a rise, which provides impetus to the mobile
services growth in India.
 Internet Services: The emergence of private players and new technologies has
provided a strong impetus to the growth of Internet and broadband services. The
quality and penetration of these services have undergone changes, with significant
improvement in the telecom infrastructure. The Internet subscriber base registered a
CAGR of 60 percent for the period 1997–98 to 2006–07. BSNL and MTNL caters to
 more than two-thirds of Internet subscribers in India. India had 2.52 million
broadband connections at the end of June 2007. Private players are catching up fast
due to increased penetration of Internet and broadband services in India. The telecom
market will experience high penetration of Internet services with the support from
government policies and introduction of novel technologies in India.

1.6 Opportunities of Telecom Sector in India

According to the report presented by taking into account the statement of Indian Ministry of
Communications and Information Technology, the telecom opportunities in India has been
growing by 20 to 40 percent every year since past 3 years. The telecom services in India
have been recognized as a world-class tool for the socio-economic development in India.
India is known to rank fourth in the telecom industry in Asia after China, Japan, and South
Korea and the telecom network in India is known to stand in the eighth position across the
globe and second among the emerging economies.
The tele-density has grown leaps and bounds in the past few years from 2.3 percent in 1999
to 4.8 percent in 2002. The world average percentage for the telecom industry as against the
Indian average is 7.5 times while the Asian average against the same was 4.5 times. The
current market range of the telecommunication industry in India has been estimated to USD
8 billion and this is expected to undergo an accretion by the end of 2012.
The growth witnessed by the telecom market in India has increased the number of
opportunities for the industry and this has been fueled by the growing mobile sector, which
has attained the consumer level of 10 million by the end of December 2002 that was almost
100 percent in the year. This outstanding growth in the mobile sector explains the advent of
digital cellular technology and reduced tariffs as a consequence of competitive pressures.
The growth in the cellular subscribers has surpassed the benchmark of subscriber base. The
telecom market has increased dramatically with the advent of Wireless in Local Loop
Technology.
Telecommunication Sector Opportunities in India assures a transparent, safe, and secured
ambiance for the telecom market. Around 300 million population of highly consumable
middle-class status that is advantageous for the industry surrounds the telecom sector in
India. This is because, in some of the Indian that possess land line telephones can be
substituted by mobile phones
that is very unlike the developed countries. Therefore, it adds up to the growth in mobile
sector in Indian telecom industry.
Few more Telecommunication Sector Opportunities in India include introduction of Internet
telephony services, privatization of VSNL, and introduction of a number of international
long distance services sector. The opportunities in the Indian telecom sector is increasing at a
massive pace with the introduction of newer and innovative schemes in various sectors and
at present the telecom sector in India is claimed to be one of the major contributors in India's
flourishing economy.

1.7 Major players in Assam

Overall there are seven major players in Assam which are as follows:-
BSNL
Assam Telecom Circle BSNL is the largest Telecom Operator in Assam providing
comprehensive range of telecom services in the state: Landline phone, WLL Mobile, GSM
Mobile, Internet, Broadband, I-Net, IN Services, Telegraph/Telex, Carrier service, MPLS-
VPN etc. BSNL Assam Circle is the only service provider, making focused efforts and
planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. BSNL has declared
year 2007 as The Year of North East emphasizing focused development thrust on the NE that
includes redundancy in OFC media, 90% umbrella coverage on WLL, extension of GSM
Mobile coverage to villages having population greater than 1000 and Broadband connections
in all DHQs and important towns. BSNL crosses 1 Million customer base in Assam. Assam
Circle has a subscriber’s base as follows (as on 30/06/2007)

Airtel

Airtel's journey to leadership, which started from one circle, single city mobile service in
Delhi culminates in Assam – a land with a rich legacy of culture & civilization. Airtel today
connects India from the Indus to the Indian Ocean and from Sabarmati to the Brahmaputra
on a network of more than 10,000 base stations with cumulative investments of more than
Rs. 16,000 crores. In the Assam and North East circles, Bharti has deployed a state-of-the-art
ER network covering key towns and highways, managed by Ericsson - world leaders in
telecom infrastructure. In addition to world-class customer care, seamless coverage and
unmatched value proposition, Airtel will also offer its customers innovative value added
services like Airtel Live, Hello Tunes. This is in keeping with Airtel’s endeavour to offer
best in class mobile services to all its customers across the country.

Aircel

Aircel began its outward expansion in 2005 and met with unprecedented success in the
Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern
provinces within 18 months of operations. Till today, the company gained a foothold in 17
circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu &
Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka,
Delhi, UP(West), UP(East) and Mumbai. Aircel has been expanding its business in different
places of Assam continuously. But without any security ring. For its mobile networks the
Aircel established ultra-modern mobile towers in different areas of Sivasagar District. The
Aircel Company has not been with provide 24hour security to these towers, which consist of
different electronic materials, Generator set etc. There is no adequate security to protect its
towers. There is no security personal in the sector one number tower of Nazira, which is
situated in front of the Nazira HS & MP School. Deforestation causes concern.

Reliance

Reliance Telecom Limited will expand its service to upper Assam, Aizwal and Imphal, from
its existing set-up in Guwahati and Shillong. According to RTL officials, the company is
putting up additional 10-12 base stations in Guwahati to increase penetration and improve
services. The company is also working on revised call rates to face competition from BSNL
and Airtel. Reliance Telecom currently has around 50 base stations in Guwahati. The service
has a customer base of around 1.10 lakh in Assam, mostly in Guwahati. Besides, it has
around 28,000 customers in NE circle. The aim is to get 2 lakh users by end of this fiscal
year. Reliance Telecom has been adding 6,000 customers every month in the region from
1,500-2,000 earlier. The official said sales rose following re-launch of pre-paid services in
Assam and NE circles from December 2004. Incidentally, the prepaid service was banned in
the region in early 2003 on security grounds. “Relaunch of the prepaid service has really
made the difference. Reliance is the only telecom company that is providing mobile services
over both- CDMA and GSM networks.
With an optical fiber network of 80,000 kms, the company aims at providing best services to
its customers. It also has 15,000 Base Transceiver Stations across the country providing
reliable wireless network.

Tata Indicom

Tata Teleservices Limited, India’s fastest growing telecom service provider, has launched its
much awaited telecom operation in the Assam circle, under its brand Tata Indicom. The
company has introduced an exciting range of products which include Prepaid and Postpaid
mobile services, Photon-High Speed Internet Access, Fixed Wireless Telephony under the
brand name Walky Talky and a host of value added services. To increase its national
footprint TTSL has invested over Rs 100 crore, in Assam circle establishing a pan India
network with 20 circles. During the current stage of launch, Tata Tele Services Ltd will
provide seamless coverage in 31 towns of Assam and will shortly be launching services in
the North East region. On the occasion of launching services in Assam, Tata- Indicom
introduced North East Corridor Starter Pack just for Rs. 199/-. Subscribers in the region can
now make STD calls across Assam for just 50 paisa per minute.
Tata Indicom is committed to providing best-in-industry product & service and host of value
added benefits. With unmatched coverage and voice clarity, Tata Indicom provide its
customers a unique experience of latest technology at an affordable cost. Tata Indicom
products & services will be available at exclusive Tata Indicom Showrooms and several
retail selling points (RSP’s) across the state. Tata Teleservices has already installed over 134
cell sites in the first phase of its network roll out itself.

Vodafone

British telecom firm Vodafone launch its brand and services in India in October 2008.For the
purpose of promotion they offered low-cost handsets for the mass and international services
such as Vodafone Passport, Vodafone Simply and Vodafone live. The telecom player offered
handsets at Rs 666 at the lower end. This will fit in with the company’s plans to capture the
mass market. Vodafone Simply — which is a basic no-frills mobile phone used to make
voice calls — ill attract the rural mass looking for a wireless version of the plain vanilla
landline phone. Vodafone Passport enables customers going abroad to talk at domestic rates.
They pay a one-off connection fee and then shell out standard Indian rates. The company
may introduce a very competitive price plan for Indian customers.
Globally, Vodafone offers aggressive strategies such as Vodafone-Stop-the-Clock price plan,
where customers can talk for up to one hour on evenings and weekends and only pay for the
first 3 minutes. Vodafone is also toying with the idea of launching customized handsets . The
exclusive handsets will be designed to meet the needs of Vodafone’s customers in terms of
price, specification and user experience. It can be fully integrated with the company’s live
services. This will help drive the use of services and increase the average revenue per user.
The company is also building brand awareness in six new circles — Orissa, Bihar, Assam,
the Northeast, Himachal Pradesh and Jammu &Kashmir — where it holds unified access
service license through its wholly owned subsidiary, Vodafone Essar Spacetel. Vodafone
Essar offers mobile services in 16 of the 23 telecom circles. However, Vodafone Essar
Spacetel is yet to receive its share of GSM spectrum from the department of telecom for the
six circles to roll out 2G services.

Vodafone’s acquisition of a controlling stake in Hutch Essar in February this year brought in
$801 million (Rs 3,285 crore) as foreign direct investment, making the world’s largest
mobile company the top investor up to May this year.

Idea
Aditya Birla Group-owned Idea Cellular launched its GSM mobile service on November 24,
2009 at Guwahati in Assam. With this, the company is in near completion of its pan-India
network rollout with presence in 21 telecom circles in India.
The company has lined up a total investment of Rs 200 crore in the current year and total of
Rs 300 crore in the first 3 years.

Idea’s mobile service will be available in 13 districts of Assam - Barpeta , Bongaigaon,

Cachar, Dibrugarh, Jorhat, Kamrup, Karbi Anglong, Kokrajhar, Nagaon, Sibsagar, Sonitpur
and Tinsukia – at the initial stage.

Chapter 2
2.1 About Prepaid services
2.2 About Post-paid services
2.1 About Prepaid services

For an infrequent user or for the one who wants to manage their wireless spending, prepaid cell
phone plans can be ideal for them. With pre-paid plans, one can buy minutes ahead of time and
replenish them as needed, instead of signing up for long-term contracts. Already widely used in
Europe, prepaid wireless plans have become the fastest-growing segment of the wireless market in
the US. More companies offer more attractive and competitively priced prepaid calling plans.

Possibly the best thing about prepaid cell-phone plans is what it doesn't have. There are no contracts
to sign, no monthly bills, no long-term commitments, no credit checks, no age limit and no hidden
fees. These features are what make prepaid wireless plans so attractive. Prepaid cell phone can stop
one or ones family members from wasting money. With prepaid cell phone plans, a customer is
going to pay as he goes along. So one knows how much he is spending.

Similar to a prepaid long distance calling card, one can buy the phone, activate it, and then pay to put
minutes or "units" on his account. As he uses the phone, minutes are subtracted from his account.
When he run low on minutes, he can pay to add more minutes. If the phone is bought for emergencies
only, then the prepaid cellular phone may save more money in the long run. There won’t be any
contract and the customers don't have to pay a monthly package fee for having the service. The
customers can buy the airtime as they need it (with some exceptions). And they do not have to pay a
deposit for service. Prepaid is also a way of learning about your usage patterns before committing to
a long-term monthly billing wireless contract.

2.1.1 Advantages of prepaid services:

• No contract to sign, no long-term commitment

• No monthly monthly bill to worry about.
• Better cost control. You know exactly how much you will spend.
• No hidden fees.
• No credit checks needed. Perfect for the credit challenged; since monthly billed plans require
credit approval.
• Great if your usage varies from month to month.
• No security deposits. Some monthly plans may require a deposit.
• Topping up your account is easy and you can do it in many ways, at any time, by going on-
line, by phone, bank machine or with a prepaid card.

2.1.2 Disadvantages of prepaid services:

• You pay more per minute.

• If you don't use the phone for an extended period of time, you lose the money in your
account.
• You can't accept collect calls or third-party billed calls.
• Outgoing and sometimes both incoming and outgoing calls are barred when the balance is
zero.

2.1.3 Prepaid cell phones are ideal for:

• people who don't want to be locked into a year-long contract

• first time cellular buyers who don't know how many monthly minutes they should sign up
for.
• people who don't want to go over their budget
• people with damaged or no credit history
 • occasional users
• people who want to buy their children a phone for emergency use
for teens and people who talk a lot on the phone.

2.2. Post-paid Services:

A mobile connection in which one uses a mobile connection with a SIM card and pay the
monthly bill at the end of the month is a Postpaid mobile connection. In this mobile
connection one uses the SIM card to pay monthly bill based on rentals, plan charges and the
usage charges. In the case of a prepaid mobile connection a person first pay by card and then
uses the phone for general utility. While on the other hand postpaid accounts are referred as
use and pay type.
In a postpaid connection one can find two types of components: The first component is the
monthly rental that the subscriber pay to the mobile service provider and the other
component is the usage charges. The uses charges generally vary from the kind of mobile
plans that have been used by the customer.
Competitive plans are very evenly introduced by the service providers so as to attract the
maximum number of customers. An engagement with corporates for closed user group
connections allow for subsidized calls to the other group members. For this purpose
generally lower tariffs on monthly rentals and usage fees are taken.
2.2.1 Why a Person choose to have a post-paid connection:
Generally because of the reason that the benefits of a prepaid connection are very limited.
• In prepaid one pays the advance for a specific number of minutes, once the time run-
out of hands the phone is needed to be recharged for the next number of days and the
due balance is needed to be increased in amount. While in case of a postpaid plan one
is needed to pay after the end of the month.
• There is no time limit in case of a postpaid plan. No contract is signed for any
particular period of time and one can talk endless without giving an account to the
balance remaining-due.
• The prepaid mobile bills are just the formalities as voucher cards while the post-plans
are bill like, where one pays after the end of month for all the minutes which one has
used.
• Most of the postpaid mobile plans connection provides unlimited minutes for talking
whether one is talking just on nights or only on nights and weekends.
• Post-paid mobile phones are used mostly by businessmen and professionals and also
by those people who live away from their loved and dear ones.
• Also the post-paid plans are more appealing than the prepaid plans because of the
availability of the phone at various times of the day 24*7 the whole month, the whole
year.
• Moreover in a state like Assam post-paid is mostly preferred by businessman and
professionals because of the roaming facility which is not provided in the pre-paid
services in Assam and Jammu and Kashmir according to the Government Of India
Rules and regulations.
• A post-paid subscriber can get the call details on request made to the service provider
or by putting an option of obtaining the call details along with the monthly bill. But a
prepaid user doesn’t get the call details. Through a detail bill one can segregate
personal and professional calls.
• For keeping a record of calls a person uses postpaid connection.
 • Sometimes due to problems in network it becomes to recharge or to fill the top up.
These kinds of problems are regular and customers are usually harassed by such kind
of problems because of which they prefer using postpaid connection where there is no
such problem.
• In postpaid connection, a consumer on non-payment of bills gets a specific time
period to pay his bills which last for about fifteen days and only after passage of that
period first the outgoing calls are barred and then incoming calls are barred. But in
prepaid connection the calls are barred as soon as the balance gets exhausted.
• Facilities like call conferencing are provided in postpaid connection which is
considered to be very essential for professionals nowadays.
In postpaid connection there’s no tension of closing or changing plans. The plan never closes
for the existing customers.

Chapter 3
Research Methodology
3. Research Methodology
It is seen that mobile phones have become a necessity for every person. The mobile phone
subscriber may use either a post-paid or a pre-paid connection. It is seen that pre-paid
connection is more dominant than post-paid connection among the people. The choice of a
connection is affected by many factors. People generally tends to choose a connection on the
basis of these factors such as income, various plans, various schemes, network coverage, GPRS,
roaming, etc.

3.1 Choice of Research Design

The study is basically a descriptive research.

3.2 Research Plan

Initially an extensive on field survey was undertaken to gain insights into the general nature
of the research problems and objectives, the possible decisions alternatives and the relevant
variables that need to be considered while designing the questionnaires. Along the lines of
the descriptive research, the research objectives were redefined and the questionnaire was
designed. With the help of the questionnaire, a survey was conducted in the Dibrugarh
University.

3.3 Sources of data

Both primary and secondary data were used for this study. The secondary data is collected
from Newspapers, Magazines, copy containing the database of officers, employees and
faculties and various websites. Primary data was collected from the respondents. From the
respondents data was collected with the help of questionnaire.

3.4 Data collection methods

The Primary data was collected with the help of Questionnaire.

3.5 Sample Size

The sample size for this survey is 190 which is collected from the students, employees and
faculties of Dibrugarh University.

3.6 Sampling procedure

190 samples were selected on the basis of Convenience sampling.

3.7 Sampling plan

Population: The population consists of the students, faculties and employees of Dibrugarh
University.
Elements: The pre-paid and post-paid customers of Dibrugarh University which includes the
students, faculties and employees of Dibrugarh University.
3.8 Questionnaire for the study
The customers were personally met. The Questionnaire was prepared keeping in mind the
objectives of the study.

3.9 Analysis of data

The data was analysed with the help of pie-charts, bar-diagrams.
Chapter 4
Analysis and Interpretations
4.0 Analysis of students
4.1 Analysis of the faculties
4.2 Analysis of employees
4.0 Analysis of students
Gender of students
Table 4.1
GENDER NO.s
MALE 89
FEMALE 51

Fig 4.1

Interpretation: During the study a total of 140 students were taken out of which 89 were male
and 51 were female.

Q1. Which connection do you have?

Fig 4.2
Table 4.2
Type of connection No. of respondents
POST-PAID 12
PRE-PAID 121
BOTH 7

Interpretation: In the study it was found that out of the 140 students, 12 of the students uses post-paid
connection, 121 students uses pre-paid and 7 uses both post-paid as well as pre-paid connection.

Q2. Are you satisfied with your present connection?

Fig 4.3
Table 4.3

No.of respondents
Yes 123
No 17
Interpretation: In the study it is seen that out of the 140 students 123 students were satisfied
with their present connection while 17 of them were not satisfied with their present
connection.

Q3. Which connection do you prefer?

Fig 4.4
Table 4.4
Type of connection No. of respondents
POST-PAID 23
PRE-PAID 117

Interpretation: The study reveals that most of the students prefer pre-paid connection. Out of
the 140 students, 117 students prefer pre-paid connection whereas 23 of the students
preferred post-paid connection.
Q4.Why do they prefer the particular connection?

Fig 4.5(a)

Table 4.5(a)

Factors No.of respondents

Billing facilities 3
Various plans 5
Network coverage 3
Others 9
Interpretation: In case of post-paid connection users it is seen that three of the user prefer the
connection due to billing facilities, five of the users prefer because of the various plans, three
of the users prefer because of the network coverage and nine of the users prefer due to other
facilities such as roaming, GPRS, etc.

Fig 4.5(b)
Table 4.5(b)
FACTORS No. OF RESPONDENTS
Availability of recharge vouchers 82
Various schemes 93
Easy assess to connection 42
Others 16

Interpretation: Incase of pre-paid connection users it is seen that 35% of the pre-paid
connection user prefer the connection due to the availability of recharge vouchers while
40% prefer the connection due to various schemes, 18% prefer the connection due to easy
assess to connection and 7% of the respondents prefer the connection due to other factors.

Q5.If you want to switch to a new connection, which one would you take?
Fig 4.6

Table 4.6

TYPE OF CONNECTION No. OF RESPONDENTS

Pre-paid 117
Post-paid 23

Interpretation: The study reveals that out of the 140 respondents, 117 respondents would take
pre-paid connection and 23 respondents would take post-paid connection if they take a new
connection.
Q6. If you have to take a new connection, what importance would you give to the following
factors?

Fig 4.7
Table 4.7
FACTORS NOT IMPORTANT VERY TOTAL
IMPORTANT IMPORTANT
Network Coverage 3 51 86 140

Customer Care 75 37 28 140

Goodwill 87 14 39 140

Call Charges 4 13 123 140

Others(roaming,GPRS,etc) 82 23 35 140

The study reveals that if the respondents have to take a new connection, call charges was
regarded as the most important factor followed by the network coverage.123 of the
respondents regarded call charges as very important and 86 of the respondents regarded
network coverage as very important. Factors like customer care, goodwill, roaming, GPRS,
etc were given least importance.

Q7. Did you have a different connection earlier?

Fig 4.8
Table 4.8
No. of Respondents
Yes 17
No 123

Interpretation: Out of the 140 respondents, 17 of the respondents had different connection
earlier whereas 123 of the respondents had been using the same connection whether it is a
post-paid or a pre-paid connection.
(i)In case you had a post-paid connection earlier, why did you choose prepaid now?

Table 4.8(a)
FACTORS No. OF RESPONDENTS
To limit your expense 3
You thought of network coverage 0
More schemes are available in pre-paid 3
You don't like to pay bills 0
Others(problem in paying bills) 2

Interpretation: The study reveals that eight of the post-paid users changed to pre-paid. Out of
them three changed their connection to limit their expense, three of the respondents changed
their connection because more schemes are available in pre-paid and two of the respondents
changed their connection due to other factors such as problem in paying bills.
(ii)In case you had a prepaid connection earlier, why did you choose a post-paid now?

Table 4.8(b)
FACTORS No. OF RESPONDENTS
You don't want to recharge again and again 0
You thought of network coverage 0
You like to pay bill at once 4
Other(GPRS, roaming) 5
Interpretation: The study reveals that out of the nine respondents who changed their
connection from pre-paid to post-paid, four of the respondents changed their connection
because they like to pay bill at once and five of the respondents changed their connection
because of other factors such as roaming, GPRS, etc.

Q8.Which one is more economical?

Fig 4.9
Table 4.9
TYPE OF CONNECTION NO. OF RESPONDENTS
POST-PAID 19
PRE-PAID 121

Interpretation: The study reveals that out of the 140 respondents, 19 of the respondents
regarded post-paid as economical and 121 of the respondents regarded pre-paid as
economical.

Q9.On a scale of 5, how would rate the following? (5 being the highest)
Post-paid Pre-paid

Fig 4.10(a) Fig 4.10(b)

Table 4.10
RATINGS 1 2 3 4 5
POST-PAID 22 43 57 7 11
PRE-PAID 7 10 16 48 59

Interpretation: The study reveals that majority of the respondents’ rated pre-paid connection
higher than the post-paid connection.

4.1 Analysis of the faculties

Gender of faculties

Fig 4.11

Table 4.11
GENDER NO. OF RESPONDENTS
MALE 11
FEMALE 4

Interpretation: During the study a total of 15 faculties of the Dibrugarh University were taken
out of which 11 were male and four were female.

Q1. Which connection do you have?

Fig 4.12
Table 4.12
TYPE OF CONNECTION NO. OF RESPONDENTS
POST-PAID 9
PRE-PAID 4
BOTH 2

The study reveals that out of the 15 faculty members, nine of the faculty members had post-
paid connection, four had pre-paid connection and two of them had both the connections.
Q2.Are you satisfied with your present connection?

Table 4.13

Table 4.13
NO. OF RESPONDENTS
YES 15
NO 0

Interpretation: The study reveals that all the faculty members were satisfied with their
present connections.

Q3. Which connection do you prefer?

Fig 4.14
Table 4.14
TYPE OF CONNECTION NO. OF RESPONDENTS
POST-PAID 9
PRE-PAID 6

Interpretation: The study reveals that nine of the faculty members preferred post-paid
connection while six of the faculty respondents preferred pre-paid connection.
Q4. Why do you prefer the particular connection?

Fig 4.15
Table 4.15
FACTORS NO. OF RESPONDENTS
Billing facilities 5
Various plans 2
Network coverage 2
Others 2

Interpretation: The study reveals that five of the respondents preferred post-paid connection
due to billing factors, two of the respondents preferred post-paid connection due to various
plans available, two of the respondents preferred the post-paid connection due to network
coverage and two of the respondents preferred the connection due to other factors.

Fig 4.15(a)
Table 4.15(a)
FACTORS NO. OF RESPONDENTS
Availability of recharge vouchers 4
Various schemes 4
Easy assess to connection 2
Others 0

Interpretation: In case of pre-paid connection users among the faculties, four of the
respondents preferred the connection due to availability of recharge vouchers, four of the
respondents preferred pre-paid connection due to various schemes and two of the
respondents preferred pre-paid connection due to easy assess to connection.

Q5. If you want to switch to a new connection, which one would you take?

Fig 4.16
Table 4.16
TYPE OF CONNECTION NO. OF RESPONDENTS
POST-PAID 8
PRE-PAID 7

Interpretation: The study reveals that eight of the respondents would prefer to take post-paid
connection and seven of respondents would prefer to take pre-paid connection if they have to
switch over to a new connection.
Q6. If you have to take a new connection, what importance would you give to the following
factors?

Fig 4.17

Table 4.17

FACTORS NOT-IMPORTANT IMPORTANT VERY-

IMPORTANT
Network Coverage 1 1 13
Customer Care 2 2 11
Goodwill 2 7 6
Call Charges 0 6 9
Others(roaming,GPRS,etc) 4 5 6

Interpretation: The study reveals that majority if the respondents regarded factors network
coverage and customer care as very important followed by goodwill, call charges and other
factors like roaming, GPRS, etc.
Q7. Did you have a different connection earlier?

Fig 4.18
Table 4.18
NO. OF RESPONDENTS
YES 4
NO 11

Interpretation: The study reveals that out of the 15 respondents, four of the respondents had a
different connection earlier whereas 11 of the respondents are using the same connection.
(i)In case you had a post-paid connection earlier, why did you choose prepaid now?
Table 4.18(a)
FACTORS NO. OF RESPONDENTS
To limit your expense 1
You thought of network coverage 0
More schemes are available in pre-paid 1
You don't like to pay bills 0
Others(problem in paying bills) 1

Interpretation: The study reveals that three of the respondents have changed their post-paid
connection to pre-paid connection. One of the respondents have changed the connection to
pre-paid to limit the expense. One of the respondents have changed the connection to pre-
paid because more schemes are available in pre-paid and another one of the respondent have
changed the connection to pre-paid because of other factors like problems in paying bills.

(ii)In case you had a prepaid connection earlier, why did you choose a post-paid now?
Table 4.18(b)
FACTORS NO. OF RESPONDENTS
You don't want to recharge again and again 0
You thought of network coverage 0
You like to pay bill at once 0
Other 1

Interpretation: During the study it was seen that only one of the respondents have changed
the pre-paid connection to post-paid because of the other factor like roaming.

Q8.Which one is more economical?

Fig 4.19
Table 4.19
TYPE OF CONNECTION NO. OF RESPONDENTS
Post-paid 6
Pre-paid 9

Interpretation: The study reveals that out of the 15 respondents among the faculty members
of Dibrugarh University, six of the respondents regarded post-paid connection as more
economical whereas nine of the respondents regarded pre-paid connection as more
economical.
Q9. On a scale of 5, how would you rate the following? (5 being the highest)

Fig 4.20(a) Fig 4.20(b)

Table 4.20
RATINGS 1 2 3 4 5 TOTAL
Post-paid 2 3 2 4 4 15
Pre-paid 1 2 5 5 2 15

Interpretation: The study reveals that two of the respondents among the faculty rated post-
paid with the rating one, three of the respondents rated post-paid connection with two, two of
the respondents gave rating three to the post-paid connection, four of the respondents gave
the rating four to the post-paid connection and four of the respondents rated the post-paid
connection as five.
In case of the pre-paid connection, one of the respondents rated pre-paid connection as one,
two of the respondents rated pre-paid connection with the rating two, five of the respondents
rated pre-paid connection with the rating three, five of the respondents rated pre-paid
connection with the rating four and two of the respondents rated pre-paid connection with the
rating five.

4.2 Analysis if the employees

Gender of the employees

Fig 4.21
Table 4.21
GENDER NO. OF RESPONDENTS
Male 15
Female 10

Interpretation: During the study, a total of 25 respondents from the employees of Dibrugarh
University were taken out of which 15 were male and 10 were female.

Q1. Which connection do you have?

Fig 4.22
Table 4.22
TYPE OF CONNECTION NO. OF RESPONDENTS
Post-paid 6
Pre-paid 19
Both 0

Interpretation: The study reveals that out of the 25 employee respondents, six of the
respondents have been using post-paid connection while 19 of the employees have been
using pre-paid connection.
Q2.Ar you satisfied with your present connection?

Fig 4.23
Table 4.23

NO. OF RESPONDENTS

YES 22
NO 3

Interpretation: During the study it was seen that majority of the respondents were satisfied
with their present connection. Out of the 25 respondents, 22 of them were satisfied with their
present connection while only three of them were not satisfied with their present connection.

Q3. Which connection do you prefer?

Fig 4.24
Table 4.24

TYPE OF CONNECTION NO. OF RESPONDENTS

Pre-paid 17
Post-paid 8

The study reveals that out of the 25 respondents eight of them preferred post-paid connection
while 17 of the respondents preferred pre-paid connection.

Q4.Why do they prefer the particular connection?

Fig 4.25(a)
Table 4.25(a)
(i) In case of post-paid connection
FACTORS NO. OF RESPONDENTS
Billing facilities 3
Various plans 2
Network coverage 3
Others 0

The study reveals that the post-paid connection users preferred the connection because of the
following factors. 37% of the respondents preferred post-paid connection because of the
billing facilities, while 25% of the respondents preferred the connection because of various
plans available in post-paid and 38% of the respondents preferred because of the network
coverage.

Fig 4.25(b)

Table 4.25(b)
FACTORS NO. OF RESPONDENTS
Availability of recharge vouchers 12
Various schemes 15
Easy assess to connection 8
Others 0
Interpretation: Incase of pre-paid connection, 34% of the respondents preferred pre-paid
connection because of availability of recharge vouchers while43% of the respondents
preferred pre-paid connection because of various schemes and 23% of the respondents
preferred pre-paid connection because of easy assess to connection.

Q5.If you want to switch to a new connection, which one would you take?

Fig 4.26

Table 4.26
TYPE OF CONNECTION NO. OF RESPONDENTS
Post-paid 9
Pre-paid 16
Interpretation: The study reveals that out of the 25 respondents, nine of the respondents
would take postpaid connection and 16 of the respondents would take post-paid connection if
they have to switch over to a new connection.
Q6. If you have to take a new connection, what importance would you give to the following
factors?

Fig 4.27
Table 4.27
FACTORS NOT IMPORTANT IMPORTANT VERY IMPORTANT
Network Coverage 0 3 22
Customer Care 5 7 13
Goodwill 10 7 8
Call Charges 0 10 15
Others(roaming,GPRS,etc) 13 1 2

Interpretation: The study reveals that the most of the respondents regarded network coverage
and call charges as the most important factors if the respondents have to switch over to a new
connection followed by customer care, goodwill and other factors such as roaming, GPRS,
etc.
Q7. Did you have a different connection earlier?

Fig 4.28
Table 4.28
NO. OF RESPONDENTS
Yes 3
No 22

Interpretation: The study reveals that out of the 25 respondents, three of the respondents had
a different connection earlier while 22 of the respondents have been using the same
connection.
(i)In case you had a post-paid connection earlier, why did you choose prepaid now?
Table 4.28(a)
FACTORS NO.OF RESPONDENTS
To limit your expense 1
You thought of network coverage 0
More schemes are available in pre-paid 0
You don't like to pay bills 0
Others 0

Interpretation: It was found out during the study that one of the respondent changed the
connection from post-paid to pre-paid because to limit the expense.
(ii)In case you had a prepaid connection earlier, why did you choose a post-paid now?
Table 4.28(b)
FACTORS NO. OF RESPONDENTS
You don't want to recharge again and again 0
You thought of network coverage 0
You like to pay bill at once 1
Other 1
Interpretation: It was found during the study that two of the respondents have changed their
connection from pre-paid to post-paid. One of the respondent changed the connection due the
factor of paying bill at once and one of the respondent change the connection due to other
factors.

Q8.Which one is more economical?

TYPE OF CONNECTION NO. OF RESPONDENTS

Post-paid 4
Pre-paid 21

Interpretation: The study reveals that out of the 25 respondents, four of the respondents
regarded post-paid as economical while 21 of the respondents regarded pre-paid as
economical.
Q9. On a scale of 5, how would you rate the following? (5 being the highest)

RATINGS 1 2 3 4 5 Total
Post-paid 9 3 7 2 4 25
Pre-paid 5 1 4 3 12 25

Interpretation: The study reveals that incase of post-paid connection, nine of the respondents
gave the rating 1, three of the respondents gave the rating 2, seven of the respondents gave
the rating 3, two of the respondents gave the rating 4, four of the respondents gave the rating
5.
In case of the pre-paid connection, five of the respondents gave the rating 1, one of the
respondent gave the rating 2, four of the respondents gave the rating 3, three of the
respondent gave the rating 4 and 12 0f the respondents gave the rating 5 to the pre-paid
connection.

Major Findings of the Project

 1. From the study it is found out that among 180 respondents, 106 of the respondents
were male and 74 of the respondents were female.
2. During the study it was found out that pre-paid connection was very much dominant
over post-paid connection. Majority of the students used pre-paid connection while
post-paid connection was dominant among the faculties. It was also seen during the
study that most of the employees uses pre-paid connection.
3. In the study it was seen that 160 of the respondents were satisfied with their present
connection out of which 123 of the respondents are students, 15 respondents are
faculties and 22 respondents are employees. 20 of the respondents are dissatisfied
with the present connection out of which 17 are students and 3 of the respondents are
employees.
4. In the study, it was seen that majority of the respondents preferred pre-paid
connection. 140 of the respondents preferred pre-paid connection out of which 117 of
the respondents were students, 6 of the respondents were faculties and 17 0f the
respondents were employees.
5. The study reveals that pre-paid connection is preferred mainly because of the various
schemes and availability of recharge vouchers. Post-paid connection is preferred
mainly because of the factors like roaming, GPRS, various plans and network
coverage.
6. In the study, it was found that 140 of the respondents would take pre-paid connection
if they have to switch to a new connection out of which 117 of the respondents are
students, 16 of the respondents are employees and 7 of the respondents are faculties.
Rest of the 40 respondents would take post-paid connection out of which 23 were
students, 9 of the respondents were employees and 8 of the respondents were
faculties.
7. In the study it was seen that more emphasis was given on call charges and network
coverage as compared to the factors like customer care, goodwill, roaming and
GPRS.
8. In the study it was seen that out of the 180 respondents, 24 of the respondents had a
different connection earlier out of which 17 of the respondents were students, 4 of the
respondents were faculties and 3 of the respondents were employees. 156 of the
respondents have been using the same connection whether it is post-paid or pre-paid
out of which 123 of the respondents were students, 11 of the respondents were
faculties and 22 of the respondents were employees.
9. In the study, it was seen that out of the 180 respondents 151 respondents considered
pre-paid connection as economical out of which 121 of the respondents were
students, 9 of the respondents were faculties, 21 of the respondents were employees.
10. During the study it was found out that income is a major factor while choosing a
connection.

Limitations

1. The study was confined to only to students, faculties and employees of

Dibrugarh University. So the findings may not be generalized in a broader
perspective.
2. Some of the respondents did not read the questionnaire carefully.
3. Some of the questionnaires were lost by the respondents during the survey.
4. It was very difficult to make the respondents realize the sincerity of the tests.
Conclusion
It can be concluded from the study that pre-paid connection is the most dominant of the two
connections. Pre-paid connection is very popular among the students because it is very much
economical and the students do not have any source of income. The post-paid connection is
used mostly by the faculties as they are economically well-of. The employees tend to use
pre-paid connection as they earn less than the employees.

Annexure
FACTORS IMPACTING CONSUMERS’ PREFERENCES OF
POST-PAID AND PRE-PAID CONNECTIONS- A
COMPARATIVE STUDY OF DIBRUGARH UNIVERSITY
QUESTIONNAIRE
(Confidential & For Research Purpose Only).Please tick(˅) whichever applicable.

General Information:
Name:…………………………………………………………………. Contact No:
…………………………….

Gender/Sex: Male Female

Age:……………
Address:
…………………………………………………………………………………………………………
……………………

Profession: Student Employee Faculty

…………………………………………………………………………………………………………
…………………………………….

Research Information
Q1. Which connection do you have?

Post-paid Pre-paid Both

Q2. Are you satisfied with your present connection?

Yes No

Q3. Which connection do you prefer?

Post-paid Pre-paid

Q4. Why do you prefer the particular connection?

Availability of recharge vouchers

Various schemes

Billing facilities

Easy assess to the connection

Others:
…………………………………………………………………………………………………………
……………………..

Q5. If you want to switch to a new connection, which one would you take?

Post-paid: Pre-paid:

P.T.
O

Q6. If you have to take a new connection, what importance would you give to
the following factors?

Factors Not important Important Very important

Network

Customer care

Goodwill
Call Charges

Others(Roaming,GPR
S,etc)

Please tick(˅) inside the table.

Q7. Did you have a different connection earlier?

Yes No

If yes then why did you change your connection?

(i) In case you had a post-paid connection earlier, why did you choose pre-paid
now?

(a) To limit your expense

(b) You thought of network
(c) More schemes are available in pre-paid
(d) You don’t like to pay bills

(e) Others………………………………………….

(ii) In case you had a pre-paid connection earlier, why did you choose pre-paid
now?

(a) You don’t want to recharge again and again

(b) You thought of network
(c) You like to pay bill at once

(d) Others………………………………………….

Q8. Which one is more economical?

Post-paid Pre-paid
Q9. On a scale of 5, how would you rate the following? (5 being the highest rank)

Post-paid Pre-paid

THANK
YOU

Bibliography
1. www.dibrugarhuniversity.org
2. www.data-out-sourcing-2.com
3. www.imrbint.com
4. www.marketpulseindia.com
5. www.assam.bsnl.co.in
6. www.wirelessguide.org
7. Research Methodology by C.R. Kothari
8. CONSUMER BEHAVIOUR In Indian Context by K.K.Srivastava, Sujata Khandai
9. Dibrugarh University- Database of Teachers, Officers and Employees of the
University [Names, Designations, Residential Address, Phone Nos.]